Yearn.Finance (YFI): overview of the token and the DeFi platform, features, operating principle, schedule and rate, storage and purchase of tokens
yearn.finance is a protocol that provides the ability to use decentralized financial services (DeFi) – lending, earnings on interest, trading. Immediately after the launch, the project caused a stir around itself – today more than 730 million dollars have been blocked in the protocol, and every day this amount is growing by an average of 10%. And the cost of the native YFI token exceeds the cost of Bitcoin.
The decentralized ecosystem aims to maximize the return on user investment. It is connected with DeFi with the Aave, Compound, Dydx protocols, which allows you to search for the best option for placing tokens at any given time. When a user deposits their cryptocurrency, it is converted to yTokens, such as yDAI or yUSDC. These are profitability-optimized tokens that will be used for earning.
YFI is an ERC-20 token used to manage protocols under the Yearn Finance DeFi platform. By interacting with the protocols, you can generate income in YFI. Btcnewsweb.com editors prepared an overview of the project and its functional token.
On 08/10/2020, the token was added to the Binance crypto exchange and is available for trading in pairs YFI / BNB, YFI / BTC, YFI / BUSD, YFI / USDT.
YFI token chart and rate
|Name||Price||Market Cap||Supply||Change % (7D)||Performance|
|Total emission||30 000 YFI|
|Current issue (as of 21.08.2020)||29 962 YFI|
|Course (as of 08/21/2020)||14 564 $|
|Market Capitalization (as of 08/21/2020)||407 719 514 $|
|Cryptoexchanges||Binance, Uniswap, Balancer, BiKi|
yearn.finance is a protocol system that runs on the Ethereum blockchain and helps users interact with several well-known DeFi protocols. Thus, participants can maximize the percentage income from the invested cryptocurrencies. The main ecosystem protocol automatically moves user funds between credit pools (Dydx, Aave, Compound).
There are other protocols in the system:
✅ ytrade.finance. Trade stablecoins with up to 1000x leverage.
✅ yliquidate.finance. Use Aave Flash Credits to liquidate your investment quickly.
✅ yswap.exchange. An exchange service through which you can deposit funds in various protocols and move from one to another.
✅ iborrow.finance. Ability to tokenize your loan with Aave and apply it for use in additional DeFi protocols.
Not all services are now fully functional, some are functioning only in test mode. Another protocol has been announced in the next few weeks: yinsure.finance. This is an insurance service where users will be able to insure their assets (initially only USDC) by paying a small percentage. The insurers will be liquidity providers.
Interaction with any of the protocols is carried out by connecting an Ethereum wallet, for example, Metamask.
How yearn.finance works
The main protocol yearn.finance, after which the entire system is named, moves funds between Compound, Aave and DyDx depending on which pool is currently generating the highest annual revenue.
Currently, work with stablecoins DAI, USDC, USDT, TUSD, sUSD and cryptocurrencies BAT, ETH, LINK, KNC, MKR, REP, SNX, ZRX, WBTC is supported. This list may change over time.
The tokens that the user sends to the protocol are converted to an equal number of yTokens (e.g. USDC and yUSDC). yearn.finance takes the initial funds and distributes them to the pools with the highest yield. Some of these funds are deposited in the yield.finance pool, available only to YFI token holders.
Why do you need a YFI token
It is an ERC-20 token designed to give users the right to participate in the governance of the protocol. YFI can be earned by interacting with the ecosystem, and it is also traded on several exchanges, including Binance and the decentralized Uniswap.
The maximum emission is 30,000 YFI, there was no premining or ICO. To further incentivize users, yearn.finance has released a new token – YFII – with an emission of 40,000. Its current rate is $ 837. This is a fork of YFI. The entire stock is planned to be distributed within 10 weeks.
The previously mentioned yTokens can be sent to Curve Finance, allowing stablecoins to be traded at decent exchange rates. Working with this tool helps liquidity, and the user is rewarded with income in yCRV tokens. But initially the tokens are “locked” in the Curve protocol. The YFI token allows users to use the accumulated yCRV.
There are three ways to earn YFI and YFII, which are detailed by the creator on Medium:
✅ Depositing yCRV to yearn.finance pool.
✅ Depositing DAI and YFI in liquidity balance sheet In exchange, BAL tokens are provided, which are then exchanged for YFI through the yGov management pool.
✅ Depositing YFI and yCRV in Balancer in exchange for BPT tokens. BPTs are then also transferred to yGov and contribute to YFI accumulation.
It all seems complicated, but you can look at it from a different angle – Proof-of-Stake. This is a bit like regular staking, but instead of staking cryptocurrency and receiving rewards for a block of confirmed transactions, the participant stakes Curve Finance and Balancer tokens and receives yearn.finance management rights.
Where to store YFI
To store the yearn.finance token, almost any wallet with support for ERC-20 tokens is suitable, for example:
✅ Mobile – Coinomi
✅ Desktop – Exodus
✅ Hardware – Ledger
If you are not going to trade YFI in the near future, we recommend choosing a cold storage wallet, this will protect your assets.
Where to trade and buy YFI
You can purchase yearn.finance (YFI) tokens on the Binance cryptocurrency exchange. How to do it:
- Log in to the exchange and make sure that the account is funded with one of the following currencies: BNB, BTC, BUSD, USDT.
- Go to your spot wallet, use the search to find the required token and click “Trade”.
- Choose the market that interests you.
- Go to the trading terminal and create a buy or sell order. If you just need to sell at the market rate, then select the “Market” order type.
Purchased YFI tokens will be credited to your account immediately:
After that, they can be used in the future turnover or withdrawn to an external wallet, indicating the address of the recipient YFI and the amount:
Advantages and disadvantages
✅ One of the most promising financial protocols and tokens today.
✅ A wide range of decentralized financial services.
✅ Management is completely given to users (token holders).
✅ Rapid development and growth of liquidity.
❌ Difficulty in mastering for beginners – only the most general information is given in the documentation, the Russian language is not supported, in general, the ecosystem at the current stage is clearly intended for professionals and DeFi enthusiasts.
❌ There is no specific roadmap.
Whatever the future of yearn.finance, this project will definitely make a significant contribution to the development of DeFi technologies in general. At the moment, participants are finding significant benefits in working with the protocol at fairly low risks. Of course, the source code is open and available to anyone, which guarantees the transparency of all developers’ actions.